POM Concept

download POM Concept

of 79

Transcript of POM Concept

  • 7/27/2019 POM Concept

    1/79

    Anna University Engineering Question Bank

    MG 1351 - Principles of Management

    UNIT I - OVERVIEW OF MANAGEMENT

    2Marks

    1. Define Management.

    Management is the process ofdesigning and maintaining of an environment in which

    individuals working together in groups efficiently accomplish selected aims.

    Management is the art of getting things through and with people in formally organized

    groups.

    Ex: Human Resource Management, Financial Management.

    2. Is Management - an art or science?

    Management is the art of getting things done from people. It has the following featuresthat make it an art.

    Creative

    Individual approach

    Application and dedication

    Initiative and

    Intelligence.

    Management also involves a systematic approach towards designing and maintaining

    an environment in which individuals work together in groups to effectively

    accomplish selected aims. The following features make it a science.

    Systematic decision making

    Universal management process

    Situational output and

    1

    http://www.questionbank4u.com/qblink.htmlhttp://www.questionbank4u.com/index.php?action=view&listid=340&subject=84&semester=42http://www.questionbank4u.com/qblink.htmlhttp://www.questionbank4u.com/index.php?action=view&listid=340&subject=84&semester=42
  • 7/27/2019 POM Concept

    2/79

    Universally accepted management.

    Thus management can be called both as an art and science.

    3. Give some features of Management.

    Management is the process of designing and maintaining an environment in which

    individuals working together in groups effectively accomplish selected aims.

    The features of Management include:-

    Purposeful and goal oriented

    Dynamic

    Multidisciplinary

    Jobs accomplished by others

    Associated with groups

    Intangible

    Continuous process and

    It is aided but not replaced by computers.

    4. What are the essential skills of Managers?

    Skill refers to expertness, practical ability, or facility in an action or doing something.

    The major skills required or expected out of managers are:-

    Technical skills Pertaining to knowledge and proficiency in activities involving

    methods and procedures;

    Human skills Ability to work effectively with other persons and to build upcooperative group relations to accomplish organizational objectives;

    Conceptual skills Ability to recognize significant elements in a situation; and to

    understand the relationship among those elements; and

    Design skills Ability to solve problems in ways that will benefit the enterprise.

    5. Define Scientific Management.

    2

  • 7/27/2019 POM Concept

    3/79

    Scientific management involves specific method of determination of facts through

    observation. The concept of scientific management was introduced by Frederick

    Winslow Taylor in the USA in the beginning of 20th century. It was further carried on

    by Frank and Lillian Gilbreth, Henry Gantt, etc. It was concerned essentially with

    improving the operational efficiency at the shop floor level.

    Scientific Management is concerned with knowing exactly what you want men to doand then see in that they do it best and cheapest way.

    6. List the principles of Scientific Management.

    Scientific management was introduced by F.W Taylor who is known as the Father of

    Scientific Management. He adopted scientific methods to increase the productivity andgreater efficiency in production.

    The principles of Scientific Management are:-

    Separation of planning and working

    Functional foremanship

    Job analyzers

    Time study

    Motion study

    Fatigue study

    Standardization

    Scientific selection of training

    Financial incentives and

    Economy and mental revolution.

    7. What is the Rule of the Thumb?

    Traditionally a rule was used in management that laid emphasis on estimation rather

    than precision. Prior to scientific management, skilled craftsmen who had learned theirjobs in lengthy apprenticeships performed work. They made their own decisions about

    how their job was to be performed. This is known as the Rule of the thumb.

    3

  • 7/27/2019 POM Concept

    4/79

    It lays emphasis on estimating a situations solution. This rule was replaced by F.W

    Taylors rule of Scientific Management.

    8. List the contributions of Fayol towards Management.

    Henry Fayol is a French industrialist whose contributions are termed as operational

    management or administrative management. He followed The Classical Approach tothe evolution of management thought. His contributions are given as follows:-

    Grouping of activities of an industrial organization into six groups, namely-

    Technical, commercial, financial, security, accounting and managerial;

    Identified six types of qualities of a manager are- Physical, mental, moral,

    educational, technical and experience;

    Fourteen principles of Management namely- Division of Work, Authority and

    responsibility and so on; and Five elements/functions of management- Planning,

    organizing, commanding, coordinating and controlling.

    9. What do you mean by Scalar Chain?

    Scalar Chain is the number ofdifferent levels of authority through which decisions

    are passed in the organization. It suggests that each communication going up or coming

    down must flow through each position in the line of authority. The scalar chain ofcommand of reporting relationships from top executive to the ordinary shop operative or

    driver needs to be sensible, clear and understood. The same levels of hierarchicalpositioned people in different departments of an Organization communicate with each

    other by establishing a plank.

    10. What do you mean by Espirit de Corps?

    Henri Fayol emphasized the need forbuilding and maintaining of harmony among the

    work force, team work and sound interpersonal relationships which is Esprit decorps. It is one of the 14 principles of management laid by Fayol. It is a French word that

    means Feelings of harmony and union among personnel. Union is strength is whatthis phrase directly implies. It emphasizes that all employees should cooperate andcoordinate with each other, which is very essential for the organizations growth.

    11. What are the various levels of Management?

    4

  • 7/27/2019 POM Concept

    5/79

    Management is the process of designing and maintaining an environment in which

    individuals working together in groups effectively accomplish selected aims. The basicthree levels of management are:-

    Top level management (Features: Decision-making, Policy formulation, etc.

    Positions held: Board of Directors, Managing

    Director, CEOs, COOs, etc.)

    Middle level management (Features: Staffing, Directing, etc.

    Positions held: Finance manager, Marketing

    manager, Production manager, etc.)

    Low level management (Features: Implementing, Time scheduling, etc.

    Positions held: Supervisors, Foremen, etc.)

    12. What are the roles played by a Manager?

    Role is defined as the pattern of behaviour which is defined for different positions. Amanager in an organization has different tasks to be accomplished. His functions in an

    organization are not restricted to one area. He has different contexts of managing which

    are said to be different roles played by him. Managerial roles depend on the formalauthority which is delegated to the manager in an organization. The following are his

    roles:-

    INTERPERSONAL ROLES INFORMATIONAL ROLES DECISIONAL ROLES

    (i) Figurehead (i) Recipient (i) Entrepreneurial

    (ii) Leader (ii) Dissemination (ii) Disturbance handler

    (iii) Liaison (iii) Spokesperson (iii)Resource allocator

    (iv) Negotiator

    13. What are the functions of management?

    Management is the art of securing maximum results with minimum effort so as to

    secure maximum prosperity and happiness for both employer and employee and give thepublic the best possible service.

    The functions of Management are:

    * Planning conscious determination of future course of action.

    5

  • 7/27/2019 POM Concept

    6/79

    * Organizing process of dividing work into convenient tasks or duties.

    * Staffing manning of the various positions created by the organization.

    * Directing includes communicating, motivating and leading.

    * Controlling involves comparison of actual results with expected results as

    set by the planning process.

    14. What is the classification of Business organizations?

    A Business organization comes into existence when there are a number of persons incommunication and relationship to each other and are willing to contribute towards a

    common objective. The classification of Business Organizations is:

    * Sole proprietorship concern

    * Partnership concern

    * Joint Stock Companies

    - Private Limited Company

    - Public Limited Company

    * Co-operative societies

    * Public and Private Sector Companies.

    15. Define Sole proprietorship.

    A Business unit that is owned and controlled by a single individual is known as a sole

    trading or sole proprietorship concern. He uses his own savings for running the business.

    The sole trader makes all purchases and sells on his own and maintains all the accounts.

    He alone enjoys all the profits and bears all the losses.

    Ex: A Fancy store.

    16. What do you mean by a Partnership firm?

    A partnership is an association of two or more persons to carry on business and to share

    its profit and losses. The relation of a partnership arises from contract. The maximum

    6

  • 7/27/2019 POM Concept

    7/79

    number of partners is limited to 10 in the case of banking business and 20 in the case of

    other business.

    Ex: Chand & Co.

    17. What do you understand by the term Joint Stock Company?

    By a Company we mean an association of many persons who contribute money ormoneys worth to a common stock and employs it in some trade or business and alsoshares the profit and loss as the case may be arising there from.

    There are two types of Joint stock companies:-

    * Private Limited company Ex: M/s Key Media Pvt. Ltd.

    * Public Limited company Ex: M/s Pearl credits Ltd.

    18. Who is (i) an active partner (ii) a sleeping partner?

    Active partner: Any partner who is authorized by others to manage the business is

    known as active partner.

    Sleeping partner: Any partnerwho does not express his intention to participate in thebusiness can be called as a sleeping partner. He will be just an investor who has a right to

    share profits.

    19. What is a Co-operative Enterprise?

    A Co-operative enterprise is a voluntary association of persons for mutual benefit and

    its aims are accomplished through self-help and collective effort. It may be described asa protective device used by the relatively less strong sections of society to safeguard their

    economic interests in the face of exploitation by producers and sellers working solely formaximizing profits.

    Ex: AAVIN Milk Federation Cooperative Society.

    20. What is a Private limited company?

    7

  • 7/27/2019 POM Concept

    8/79

    A Private limited company is a company which has a minimum paid up capital as may

    be prescribed. It can be incorporated with just two persons. It can have a maximum of 50

    members. It cannot go in for a public issue. It restricts the transfer of its shares. It is

    particularly suitable for industrial ventures which can get many concessions in respect of

    income tax.

    Ex: M/s Key Media Pvt. Ltd.

    21. What is a Public limited company?

    A Public limited company should have a minimum of 7 members and the maximumlimit is unlimited. It can issue shares to the Public. The financial statement should be

    sent to all the members and to the Registrar of Companies. The shares of a public limitedcompany can be transferred by the members to the others without any restriction by the

    company. Such transfers are made through organized markets called stock markets or

    stock exchanges.

    Ex: M/s Pearl creditsLtd.

    22. What is a Public sector Enterprise?

    Public enterprise or State enterprise is an undertaking owned and controlled by thelocal or state or central government. They are financed and managed by the

    government. They are started with a service motive.

    Ex: NLCLtd.

    23. What is a Public Corporation?

    A Public corporation is an autonomous body corporatecreated by a special statute ofa state or central government. A public corporation is a separate legal entity created fora specific purpose.

    Ex: LIC.

    24. What is social responsibility?

    By Social Responsibility, we mean the intelligent and objective concern for the

    welfare of society that restrains individual and corporate behaviour from ultimatelydestructive activities, no matter how immediately profitable, and leads in the direction of

    positive contributions to human betterment, variously as the latter may be defined.

    8

  • 7/27/2019 POM Concept

    9/79

    25. What are Values?

    Values are defined as global beliefs that guide actions and judgments across a variety

    of situations. Human values are the core of ethical or unethical behaviour. Values

    represent basic convictions that a specific mode of conduct is personally sociallypreferable to an opposite mode of conduct.

    16 Marks

    1. Trace the evolution of managementwith reference to the contributions made

    by management thinkers.

    Management is defined for conceptual, theoretical and analytical purposes as

    that process by which managers direct, maintain and operate purposive

    organizations through systematic, coordinated, cooperative human efforts.

    Management is a process involving planning, organizing, staffing, directing and

    controlling human efforts to achieve stated objective in an organization.

    Contributions of:

    Peter Drucker

    F.W. Taylor

    Elton Mayo

    Henri Fayol

    Max Weber

    Henry Gantt

    Frank & Lillian Gilbreth.

    These contributions came bit by bit and in haphazard manner and have failed to

    stimulate to study management as a distinct discipline. However their ideas created an

    awareness about managerial problems.

    9

  • 7/27/2019 POM Concept

    10/79

    2. What is the role of scientific management in the modern era?

    Scientific management involves specific method of determination of facts throughobservation. The concept of scientific management was introduced by Frederick

    Winslow Taylor in the USA in the beginning of 20th century. It was further carried onby Frank and Lillian Gilbreth, Henry Gantt, etc. It was concerned essentially with

    improving the operational efficiency at the shop floor level.

    Scientific Management is concerned with knowing exactly what you want men to do

    and then see in that they do it best and cheapest way.

    Scientific management was introduced by F.W Taylor who is known as the Father of

    Scientific Management. He adopted scientific methods to increase the productivity andgreater efficiency in production.

    The Features of Scientific Management are:-

    Separation of planning and working

    Functional foremanship

    Job analyzers

    Time study or Work measurement

    Method study

    Motion study

    Fatigue study

    Standardization

    Scientific selection of training

    Financial incentives

    Economy and

    Mental revolution.

    Role of scientific management in the modern era

    Paved way for progress in productivity

    Employee-Employer relationship to be harmonious

    10

  • 7/27/2019 POM Concept

    11/79

    Training & Development is the necessity of the hour

    Elimination of wastes through quality management is a control measure

    Optimal utilization of resources made possible.

    Scientific management is still considered the basic idea for paving the way of modernmanagement approach.

    3. Explain the contributions of F.W.Taylor to Management.

    Scientific Management is concerned with knowing exactly what you want men to doand then see in that they do it best and cheapest way.

    Scientific management was introduced by F.W Taylor who is known as the Father of

    Scientific Management. He adopted scientific methods to increase the productivity and

    greater efficiency in production.

    Principles of Scientific Management:

    Replacing Rule of thumb with science

    Harmony in group action

    Cooperation

    Maximum output and

    Development of workers.

    The Features of Scientific Management are:-

    Separation of planning and working

    Functional foremanship

    Job analyzers

    Time study or Work measurement

    Method study

    Motion study

    Fatigue study

    Standardization

    11

  • 7/27/2019 POM Concept

    12/79

    Scientific selection of training

    Financial incentives

    Economy and

    Mental revolution.

    Benefits of scientific management

    Taylors scientific management is more relevant to mechanization and automation-

    technical aspect of efficiency- than the broader aspects of management of an

    organization. It created awareness about operational efficiency at the shop floor level

    than at the higher levels.

    4. Explain the contributions of Henri Fayol.

    Management is simply the process of decision-making and control over the action ofhuman beings for the expressed purpose of attaining pre-determined goals. Management

    is the art of getting things through and with people in formally organized groups.

    Administrative Theory of Management Usage of the term Administration; the

    Six activities of an industrial organization namely, technical, commercial, financial

    security, accounting and managerial.

    Fourteen general Principles of Management Division of work, Espirit de corps.

    Five Elements of management Planning, Organizing, Commanding, Coordinating,

    Controlling

    Six Managerial qualities Physical, Mental, Moral, Educational, Technical andExperience.

    Fayol made a clear distinction between management principles and management

    elements. These principles are flexible and capable of being adopted to every need. It

    is a matter of knowing how to use each of them which is a difficult art requiring

    intelligence, experience and proportion.

    12

  • 7/27/2019 POM Concept

    13/79

    5. Explain the contributions of Abraham Maslow and McGregor.

    Motivation is one of the most important factors affecting human behavior and

    performance. This is the reason why managers attach great importance to motivation

    in organization setting. Motivation represents an unsatisfied need which creates a

    state of tension or disequilibrium, causing the individual to move in a goal directed

    pattern towards restoring a state of equilibrium by satisfying the need.

    THEORY X AND THEORY Y

    Douglas McGregor proposed two distinct views of human beings: on basically

    negative, labeled Theory X, and other basically positive, labeled Theory Y. After

    viewing the way in which mangers dealt with employees, McGregor conclude that a

    managers view of the nature of human being is based on a certain grouping of

    assumptions and that he or she tends to mold his or her behavior toward employees

    according to these assumptions.

    Under Theory X, the four assumptions held by mangers are:

    1. Employees inherently dislike work and, whenever possible, will attempt to avoid it.

    2. Since employees dislike work, they must be coerced, controlled or threatened with

    punishment to achieve goals.

    3. Employees will avoid responsibilities and seek formal direction whenever possible.

    4. Most workers place security above all other factors associated with work and will

    display little ambition.

    In contrast to these negative views about the nature of human beings, McGregor listed

    the focus positive assumptions that he called Theory y:

    1. Employee can view work as being as natural as rest or play.

    2. people will exercise self direction and self control if they are committed to the

    objective.

    3. The average person can learn to accept, even seek, responsibility.

    13

  • 7/27/2019 POM Concept

    14/79

  • 7/27/2019 POM Concept

    15/79

    Management science or art

    Management as profession and

    Universality of management

    Purpose

    Increase efficiency

    Crystallize the nature of management

    Train and develop managers

    Influence human behaviour

    Improve research

    Attain social objectives

    Merits

    Demerits

    Management is a process involving planning, organizing, staffing, directing and

    controlling human efforts to achieve stated objective in an organization.

    7. Explain the importance of management in todays dynamic business world.

    Management is defined forconceptual, theoretical and analytical purposes as

    that process by which managers direct, maintain and operate purposive

    organizations through systematic, coordinated, cooperative human efforts.

    Management is a process involving planning, organizing, staffing, directing and

    controlling human efforts to achieve stated objective in an organization.

    Importance of management

    Key elements/functions in management

    Role of management in business application in functional areas of production,

    marketing, Human resources, Finance and Information system.

    15

  • 7/27/2019 POM Concept

    16/79

    Management is a process involving planning, organizing, staffing, directing and

    controlling human efforts to achieve stated objective in an organization.

    8. Differentiate between Management and Administration with suitable examples.

    Management is simply the process of decision-making and control over the action of

    human beings for the expressed purpose of attaining pre-determined goals.

    Management is a process of organized activities. It involves working with people and

    getting organizational objectives achieved through them. It tries to make effective

    utilization of various resources.

    Administration is that phase of a business enterprise that concerns itself with the

    overall determination of institutional objectives and the policies necessary to be

    followed in achieving these objectives. Administration plans and stabilizes the broad

    lines or principles which will govern action.

    Basis of differences between Management and Administration

    Level in organization

    Major focus

    Nature of functions

    Scope of functions

    Factors affecting decisions

    Employer-employee relation

    Qualities required

    Merits

    Demerits

    The basic point of controversy between management and administration lies in terms

    16

  • 7/27/2019 POM Concept

    17/79

    of coverage of activities. Various views expressed in this regard have led to the

    emergence of three approaches namely- Administration is above management;

    Administration is a part of management and Management and Administration are

    same. Everyone performs all managerial functions, only relative importance of these

    functions varies.

    9. Outline the various forms of Business organizations.

    Ownership of business is represented by the right of an individual or a group of

    individuals to acquire legal title to assets for the purpose of controlling them and to

    enjoy gains or profits from such possession and use.

    Definition of Business

    Definition of Business organization

    A Business organization comes into existence when there are a number of persons in

    communication and relationship to each other and are willing to contribute towards a

    common objective.

    Classification of business organizations

    The classification of Business Organizations is:

    * Sole proprietorship concern

    * Partnership concern

    * Joint Stock Companies

    - Private Limited Company

    - Public Limited Company

    * Co-operative societies

    * Public and Private Sector Companies.

    Features of each business organization

    Merits and Demerits

    Every business organization has its own advantages and disadvantages depending

    17

  • 7/27/2019 POM Concept

    18/79

    upon its features. In choosing a particular form of organization, an entrepreneur will

    try to find out how far his requirements will be met by a particular form of

    organization.

    10. Differentiate between a public and a private limited company.

    The increased needs of modern industry and commerce could not be met by sole

    proprietorships or partnerships. It was the joint stock type of organization which

    facilitated the full utilization of the technical and other innovations brought in by the

    industrial revolution. The Joint Stock Company is an artificial person created for

    carrying on some business by an association of persons. It is recognized by law, with

    a distinct name, a common seal, a common capital comprising transferable shares of

    fixed value carrying limited liability, and having a perpetual succession.

    Definition of Private and Public company

    Compare and contrast private and public company features

    The company form of organization is best suited to those lines of business activity

    which require huge capital outlay and maximum stability. This type of business

    organization dominates the world of industry, commerce and finance today.

    11. Discuss the merits and demerits of various types of organization.

    Ownership of business is represented by the right of an individual or a group of

    individuals to acquire legal title to assets for the purpose of controlling them and to

    enjoy gains or profits from such possession and use.

    Definition of business

    Classification of business organization

    The classification of Business Organizations is:

    * Sole proprietorship concern

    18

  • 7/27/2019 POM Concept

    19/79

    * Partnership concern

    * Joint Stock Companies

    - Private Limited Company

    - Public Limited Company

    * Co-operative societies

    * Public and Private Sector Companies

    Merits and demerits of all 5 types of business organizations

    Every business organization has its own advantages and disadvantages depending

    upon its features. In choosing a particular form of organization, an entrepreneur will

    try to find out how far his requirements will be met by a particular form of organization.

    12. Explain Public sector and Private sector enterprises with reference to

    Indian Companies?

    Ownership of business is represented by the right of an individual or a group of

    individuals to acquire legal title to assets for the purpose of controlling them and to

    enjoy gains or profits from such possession and use.

    Definition of Business, Public sector and Private sector units

    Characteristics/features

    Advantages and disadvantages of Public and private sector companies

    Examples of Indian companies

    Public sector SAIL, NLC, NTPC, Indian Airlines, etc.

    Private sector Tata Steel, Mahindra&Mahindra, Reliance Industries, Jet Airways, etc.

    Every business organization has its own advantages and disadvantages depending

    upon its features. The public and private sector units are usually large scale industries

    which nurture the needs of people like power, aviation and so on.

    19

  • 7/27/2019 POM Concept

    20/79

    13. Explain the recent developments in modern management theory.

    Management is defined for conceptual, theoretical and analytical purposes as

    that process by which managers direct, maintain and operate purposive

    organizations through systematic, coordinated, cooperative human efforts.

    Management is a process involving planning, organizing, staffing, directing and

    controlling human efforts to achieve stated objective in an organization.

    System theory of management

    Features of system theory

    Contingency / situational approach of management

    Critical evaluation

    Systems approach came in a big way in managerial analysis and raised the hope of

    becoming a general and unified theory of management. In contingency approach

    managers should not ignore the importance of taking actions according to the needs

    of the situations.

    14. Discuss the contributions of Hawthorne experiments in the development of

    managerial thinking.

    ELTON MAYO and his associates greatly contributed to the human relations approachand MAYO is rightly called as The Father of Human Relations Movement. Elton Mayo

    conducted a few experiments to find out factors that could increase productivity. These

    experiments were called THE HAWTHORNE EXPERIMENTS.

    The following were the experiments:-

    Illumination experiments

    Bank wiring experiments

    Relay assembly room experiments

    Mass interviewing experiments

    20

  • 7/27/2019 POM Concept

    21/79

    CONTRIBUTIONS

    Human relations Approach

    Non economic awards

    Social man

    Organization as a social system

    LIMITATIONS

    Criticized for lack of scientific and vigorous research

    Experiments were too narrow to warrant generalizations.

    15. What are the various environmental factors that a manager should consider in

    an organization?

    Environment is a collectivity of all factors within the control of individual business

    and beyond the control of individual business. Environment includes all the

    conditions, circumstances, and influences surrounding the total organization or any of

    its part. The environment may be

    External and

    Internal

    EXTERNAL ENVIRONMENT

    It greatly influences the working of every business. Its major components are:

    Economic- capital, labour, suppliers, consumers and customers

    Technological

    Social

    Political

    Ethical

    21

  • 7/27/2019 POM Concept

    22/79

    INTERNAL ENVIRONMENT

    It is considered with the day to day work of the various departments of an

    organization. They may be

    Financial aspects

    HR policies and procedures

    Production activities

    Marketing and selling activities

    Information system

    The environmental forces may affect different parts of the organization in different

    ways because different parts interact with their relevant external environment

    differently. The impact of environmental forces on the organizations is not unilateral

    but the organizations may also affect the environment. So the organizations must

    either adjust to the environment or perish.

    16. What are the challenges before Indian Managers?

    Every business has to cope up with the external environments prevailing at different

    times. This environment provides a set of outside challenges faced by the modern

    Indian managers.

    INFORMATION TECHNOLOGY

    Revolution of IT (Computers, Internet, telecom,)

    Proper training of employees required

    Managers must be aware of the opportunities and threats posed to

    the organization by the updated technology revolution.

    GLOBALISATION OF ECONOMY

    22

  • 7/27/2019 POM Concept

    23/79

    Communication revolution brought world closer

    Opening of Indian markets in MNCs

    Planning of business strategies keeping in view the world

    economy.

    INTELLECTUAL CAPITAL

    Principal assets of modern organization lie in the minds of workers

    than machinery

    To capture and use the knowledge of workers that is an asset.

    NEWER ORGANOZATIONAL DESIGNS

    CHANGING JOB PROFILE

    CHANGING WORKFORCE PROFILE

    INCREASING ROLE OF WOMEN EMPLOYEES

    EMPHASIS ON KNOWLEDGE MANAGEMENT

    In order to face the challenges that have been posed or likely to be posed, managers

    have to change their practices which they have used to adopt in pre-liberalised era.

    17. What do you mean by social responsibilities of Managers?

    A manager has to work not only for the betterment of the organization, but also work

    for the societys betterment. The society awakened and vocal by the urgency of social

    problems, is asking managers what they are doing to discharge their social

    responsibilities. The major components to be considered in the context of social

    responsibilities are given as follows:

    Social responsibility and social responsiveness

    Arguments against business involvement in social actions.

    Reaction and proaction

    Role of government

    23

  • 7/27/2019 POM Concept

    24/79

    Influence of values and performance criteria on behavior

    Social audit

    Thus considering the above mentioned factors a manager should maintain a

    balance between the organization s as well as societys welfare and growth.

    18. Is Management a profession? Discuss.

    Profession has a dictionary meaning as Calling in which one professes to have

    acquired specialized knowledge, which is used either in instructing, guiding or

    advicing others. Profession is a vocation requiring some significant body of

    knowledge that is applied with high degree of consistency in service of some

    relevant segment of society.

    The following are the list of attributes of a profession and let us see if management

    satisfies these criteria.

    Body of specialized knowledge and techniques - YES

    Formalized methods of acquiring training and experience - YES

    Establishment of professional associations - NO

    Code of conduct - NO

    Priority of service over economy - YES

    Since some of the attributes of a profession is satisfied by a management and some

    are not we can say MANAGEMENT IS NOT YET A FULL FLEDGED

    PROFESSION.

    19. Discuss the main characteristics of an effective manager.

    A manager should undertake a number of functions from planning to control. He

    has to take decisions for every type of activity. The decisions of manager of

    manager influence the working of an organization. The main qualities of an effective

    24

  • 7/27/2019 POM Concept

    25/79

    manager are:

    Education

    Intelligence

    Leadership

    Training

    Technical knowledge

    Maturity

    Positive attitude

    Self confidence

    Foresight

    Thus we can conclude that business, since it is prone to risks, a manager is

    expected to possess Positive thinking without which progress in business becomes

    next to impossibility.

    20. Discuss whether Management is an Art or Science.

    Management is the process ofdesigning and maintaining an environment in which

    individuals working together in groups, effectively accomplish selected aims.

    MANAGEMENT AS AN ART

    Management is the art ofgetting things done from people. It has the following

    features that makes it an art.

    An art is often regarded as the systematic application of skill or knowledge in

    effective accomplishment of results.

    The following features makes management an art:-

    Creative

    Individual approach

    Application and dedication

    Initiative

    25

  • 7/27/2019 POM Concept

    26/79

    Intelligence

    A science is a systematized body of knowledge acquired by mankind through.

    observation and experimentation. Management also involves a systematic approach

    towards designing and maintaining an environment in which individuals work

    together in groups to effectively accomplish selected aims. The following features

    makes management a science:-

    Systematic decision making

    Universal management process

    Situational output

    Universally accepted management.

    As management fulfills both the features of art and science it can be called both as

    an art and science.

    21. Who are the different partners in partnership concerns? Discuss features,

    merits and demerits.

    A partnership concern is an association of2 or more persons to carry on business

    and to share its profits and losses. In sole proprietorship financial resources and

    management skills are limited. One man cannot supervise personally all the

    business activities.

    TYPES OF PARTNERS

    Active Partner

    Stepping Partner

    Normal Partner

    Partner in profit only

    Partner by stopper

    26

  • 7/27/2019 POM Concept

    27/79

    Sub-Partner

    Secret Partner

    Minor as Partner.

    FEATURES OF PARTNERSHIP

    Agreement

    Multiplicity of person

    Unlimited liability

    Registration

    Common management

    Utmost good faith

    Lawful business

    Sharing of profit

    Contractual relations

    Mutual agency.

    ADVANTAGES OF PARTNERSHIP

    Easy to form

    Registration not compulsory

    Larger financial resources

    Greater management talent

    Prompters in decision making

    Risk of business shared by more persons

    More possibility of growth and expansion of business

    There can be any change in managerial setup capital and scale of

    operations

    27

  • 7/27/2019 POM Concept

    28/79

    Easy dissolution.

    LIMITATIONS OF PARTNERSHIP

    Unlimited liability increases dissolution of firm

    Lack of harmony among partners

    Lack of public faith

    Limited resources

    Limitation of transfer of share.

    22. Give the overall view of functional areas of management.

    Management is the process of designing and maintaining an environment in which

    individuals working together in groups, effectively accomplish selected aims.

    Management is required to achieve business objectives. In order to reach various

    goals managerial activities are divided into various functions. The main operating

    units of an undertaking are generally purchase, sales and storage. So management

    process will require undertaking of certain functions.

    The eight functional areas of management are:

    Production management

    Development management

    Material management

    Personnel management

    Financial management

    Marketing management

    Purchasing management

    Office management.

    28

  • 7/27/2019 POM Concept

    29/79

    23. Discuss Bureaucratic theory in detail.

    MAX WEBER, a German sociologist who was a teacher at Berlin University was a

    chief exponent of bureaucratic model. It was a rational approach wherein specific

    objectives of organization are laid down are organization is designed to achieve

    them and it is legal because authority stemmed from a clear defined set of rules,

    procedures and functions.

    Features

    A clear separation between superior and subordinate

    Division of labour based on competence and functional

    specialization

    Clear divorce between personnel and official matters

    System of rules, regulations, procedures

    There is hierarchy in positions based on legal authority and

    power.

    Merits

    Demerits

    Bureaucratic structure can work well when the environment is highly static and

    predictable. In dynamic environment, more interaction between organization and

    environment is required. There is high need for information monitoring and

    processing.

    24. Discuss Quantitative/Mathematical or Operations theory in detail.

    Management is the process of designing and maintaining an environment in

    which individuals working together in groups, effectively accomplish selected

    29

  • 7/27/2019 POM Concept

    30/79

    aims. Many theories were put forward to understand what management is, what

    management theory is and how managerial events should be analyzed. We are

    going to discuss 2 theories out of it, the mathematical approach and the operation

    theory.

    MATHEMATICAL APPROACH

    This is one of the approaches of management. This theory lays emphasis on logical

    thinking and rational decision-making. Thus this theory gives tools for rational

    decision-making and also formulae.

    Features

    Mathematical processes, concepts, symbols and models

    Makes management purely a logical process

    Expressed as mathematical symbols and relations.

    Limitations

    Preoccupation with mathematical models

    Many aspects in management cannot be modeled

    It is hardly a school to management.

    OPERATIONAL APPROACH

    It is one of the approaches in management that emphasizes adoption of techniques

    and knowledge from other fields and approaches.

    Features

    Draws together concepts, principles, techniques and knowledge from other fields andmanagerial approaches

    Distinguishes managerial and non-managerial knowledge.

    Develops classification system built around the managerial

    functions.

    30

  • 7/27/2019 POM Concept

    31/79

    Limitations

    Does not identify representing or coordination as a separate function.

    The mathematical and operational approaches paved way for better analysis of

    situations by building models. These approaches helped managers in decision-

    making processes.

    25. Explain systems approach and contingency approach in detail.

    Management is the process of designing and maintaining an environment in

    which individuals working together in groups, effectively accomplish selected

    aims. Many theories were put forward to understand what management is, what

    management theory is and how managerial events should be analyzed. Let us

    discuss the systems approach and contingency approach out of it.

    SYSTEMS APPROACH

    A system view point may provide the important criteria to unify management

    Theory. It treats various approaches such as process, quantitative and behavioral

    all as one theory of management.

    Features

    Broad applicability

    Inspite of boundaries they interact with external environment

    Recognizes importance of studying interrelations of planning,

    organizing, controlling.

    Limitations

    It can hardly be considered as a new approach in management.

    CONTINGENCY APPROACH

    It is also called as the situational approach. It is based on basic premises that there

    is no one best way to handle any management problem.

    Features

    31

  • 7/27/2019 POM Concept

    32/79

    Managerial practice depends on circumstances.

    Recognizes influence of given solutions on organizational behaviour patterns.

    Limitations

    Difficulty in determining all relevant contingency factors and showing their relations

    Very complex.

    Systems approach came in a big way in managerial analysis and raised the hope of

    becoming a general and unified theory of management. In contingency approach

    managers should not ignore the importance of taking actions according to the needs

    of the situations.

    UNIT I - PLANNING

    2 Marks

    1. Planning

    Planning involves selecting missions and the objectives and the actions to achieve them.

    It ends with decision making, which is choosing the best alternative from the avail-ablefuture courses of action.

    (OR)

    Planning is deciding in advance what to do, how to do, when to do and who is to do it. Itis the selection among alternates of future course of action for enterprise as a whole and

    each department within it. Plans involve selecting enterprise objectives and determining

    ways of achieving them.

    EG: The goal set for limited period like five year plans

    2. TYPES OF PLANNING:

    Some types of planning are:

    Corporate and functional planning.

    Strategic and tactical planning.

    Long term and short term planning.

    Proactive and reactive planning.

    32

    http://www.questionbank4u.com/index.php?action=view&listid=340&subject=84&semester=42http://www.questionbank4u.com/index.php?action=view&listid=340&subject=84&semester=42
  • 7/27/2019 POM Concept

    33/79

    Formal and informal planning.

    3. MISSION:

    A mission statement helps the organization to link its activities to the needs of the societyin which it operates. In short mission is a basic fundamental principles for which the

    organization is created.

    EG: Canara Bank Good People To Grow With

    VISION:

    A vision statement indicates how the organization should be, after a particular time

    period

    4. MBO:

    Management by objectives is defined as a comprehensive managerial system that

    integrates many key managerial activities in a systematic manner and that is consciouslydirected towards the effective and efficient achievement of organizational and individual

    objective.

    (OR)

    MBO is a process whereby the superiors and the subordinate managers of an en-terprise

    jointly identify its common goals, define each individual major areas of responsi-bility interms of results expected of him, and use these measures as guides for operating the unit

    and assessing the contribution of each of its members. - GEORGE ODIORNE

    5. POLICIES:

    Policy is a statement which provides guidance in decision making to members of an

    organization in respect to any course of action. Policies are the guidelines to achievegoals.

    - L.M.PRASAD

    (OR)

    Policies are general statements of understandings which guide or channel think-ing indecision making or subordinates.

    - KOONTZ and WEIHRICH

    33

  • 7/27/2019 POM Concept

    34/79

    6. TYPES OF PLANS:

    Some types of plans are:

    Multi use plans

    Objectives

    Strategies

    Policies

    Procedures

    Rules

    Single use plans

    Programmes

    Budgets

    Schedules

    Projects

    Methods

    7. STRATEGY:

    Strategy is the determination of basic long term objectives and the adoption of course of

    action and allocation of resources to achieve these goals-Alfred D Chandler.

    Three definitions are indicative of more common use of strategy:

    General programs of action and deployment of resources to attain comprehensive

    objective.

    The programs of objectives of an organization and their changes, resources used to

    attain these objectives and policies governing the acquisition, use and disposition of these

    resources.

    The determination of basic long term objectives of an enterprise and the adoption of

    course of action and allocation of resources to achieve these goals.

    EG: Team goal

    34

  • 7/27/2019 POM Concept

    35/79

    8. FEATURES OF POLICIES:

    Policy is a statement which provides guidance in decision making to members of an

    organization in respect to any course of action. Policies are the guidelines to achieve

    goals.

    - L.M.PRASAD

    UNIT III - ORGANIZING

    2 Marks

    1. Define Organization.

    An identified group of people contributing their efforts towards the attainment of

    goals is called an organization. Organisation is the process of establishing relationships

    among the members of the enterprise.

    ORGANISATION may be defined as the process of

    i) Identifying and grouping the work to be performed

    ii) Defining and delegating responsibility and authority

    iii) Establishing relationships for the purpose of enabling people to work most

    effectively together in accomplishing objectives.

    2. What is the purpose of Organization?

    35

    http://www.questionbank4u.com/index.php?action=view&listid=342&subject=84&semester=42http://www.questionbank4u.com/index.php?action=view&listid=342&subject=84&semester=42
  • 7/27/2019 POM Concept

    36/79

    Organizing activities are very important for the success of an enterprise. Organization is

    the foundation store upon which the whole structure of management is built. It is thebackbone of management. A sound organization can contribute to the success of an

    organization by serving the following purposes-

    Facilitates Administration

    Increases the efficiency management

    Stimulates creativity and innovation

    Facilitates growth and diversification and

    Facilitates co-ordination and communication.

    3. What is Organizing?

    Organizing is the act of rearranging elements following one or more rules. It is the

    process of defining and grouping the activities of the enterprise and establishing theauthority relationships among them. Organizing is defined as the management function of

    assigning duties, grouping tasks, formal reporting relationships and ensuring effective

    coordination within the organization.

    4. What is Specialization?

    Specialization is the process in which a person is specialized in a particular subject,

    in a profession, art, course or in a work, they are said to be more known in a

    particular subject. Specialization means the process of dividing the work. Specialization

    permits individuals to develop expertise in their assigned tasks and their own and groups

    effectiveness. Specialization refers to the degree to which the overall organizationsactivity is broken down into smaller components.

    5. What is Job design?

    Job design is usually broad enough to accommodate peoples needs and desires. It maybe especially appropriate to design jobs for exceptional persons in order to utilize their

    potential. People spend a great deal of time on the job and it is therefore important to

    design jobs so that individuals feel good about their work. Two important goals of jobdesign are:-

    To meet the organizational requirements such as higher productivity, operational

    efficiency, quality of products/service etc.

    To satisfy the needs of the individual employees like interests, challenge,

    achievement etc.

    6. What are the benefits of Specialization?

    Specialization refers to the degree to which the overall organizations activity is broken

    down into smaller components. The benefits of specialization are as follows:-

    36

  • 7/27/2019 POM Concept

    37/79

    Good quality of products

    Less consumption of work time

    Less but effective utilization of resource and

    Organizational growth.

    7. What are the limitations of Specialization?

    Specialization permits individuals to develop expertise in their assigned tasks and their

    own and groups effectiveness. The limitations of specialization are as follows:-

    (a) Workers who must perform highly specialized tasks over and over again become

    bored and dissatisfied with the work;

    (b) Specialized tasks seldom offer the worker any real challenge and few opportunities to

    learn and grow;

    (c) Worker becomes bored with the work, monotony, absenteeism, tardiness increases

    and the quality of work decreases; and

    (d) The workers dissatisfaction has a strong negative impact on overall organizationalmorale and effectiveness.

    8. What is Job rotation?

    Job rotation is an important method for broadcasting the outlook of managers andpotential managers. They are transferred from one job to another and from one

    department to another in a systematic way .This method provides a great deal of job

    experience for potential executives who need the broadening of their outlook and an

    increased understanding of managerial aspects. The idea in this method is to import anoverall knowledge and familiarity with different jobs.

    9. What is Job enlargement?

    Job enlargement refers to enlarging the range of tasks in a job to make it more broad-

    based. It is the strategy adopted by many managers to combat the maleffects such as

    division of labour, assembly line and job simplification which has made the jobs dull and

    monotonous. It attempts to make a job more valid by removing the dullness associatedwith performing repetitive operations. As a result there was variety and challenge in the

    job. Workers will get job satisfaction and there is also improvement in their performance.

    10. What is Job enrichment?

    Job enrichment is a non-financial motivational technique which emphasizes the needfor challenging and interesting work. It implies increasing the contents of the job or

    the deliberate upgrading of responsibility, scope and challenge in work. It is thereforebased on the assumption that in order to motivate personnel, the job itself must provide

    opportunities for achievement, recognition, responsibility, advancement and growth. The

    37

  • 7/27/2019 POM Concept

    38/79

    job is designed in such a manner that it becomes more interesting and challenging to the

    job holder.

    11. What is Departmentation?

    Departmentation means the process of grouping of similar activities of the business

    into department, division or other homogenous unit. It is used for the purpose offacilitating smooth administration at all levels. This facilitates communication, co-

    ordination and control, thus contributing to organizational success. It creates semi-

    autonomous units with independent responsibilities, providing satisfaction to the managerwhich in turn improves efficiency and effectiveness.

    12. What is Functional Departmentation?

    Grouping activities in accordance with the functions of an enterprise called functional

    departmentation embodies what enterprises typically do. Since all enterprise

    functions are production, selling and financing, it has been logical to group these

    activities into such departments as engineering, production, sales or marketing andfinance.

    13. What are the advantages of Functional Departmentation?

    Functional departmentation involves the grouping of people on the basis of their overallfunction such as manufacturing, finance, production and human resources. The

    advantages of Functional departmentation are:-

    Most logical, time proven and natural form of departmentation

    Provides specialization which makes optimum utilization of man power

    Ensures the performance of all activities necessary for achieving organizationalobjectives

    Facilitates delegation of authority

    Permits effective control over performance

    Eliminates costly duplication of effort and

    Makes management easier because managers have to be experts only in a narrow range

    of skills.

    14. What are the demerits of Functional Departmentation?

    Functional departmentation involves the grouping of people on the basis of their overall

    function such as manufacturing, finance, production and human resources. Thedisadvantages of functional departmentation are given below:-

    Provides poor communication across functional departments

    38

  • 7/27/2019 POM Concept

    39/79

    Slow response times to external changes

    Decisions to be concentrated at the top management resulting in delays and

    Creates an atmosphere in which it is difficult to pinpoint responsibility for problems.

    15. What are the components of Divisional Departmentation?

    Departmentation means the process of grouping of similar activities of the business into

    department, division or other homogeneous units. It is used for the purpose of facilitating

    smooth administration at all levels. The various components of divisionaldepartmentation are:-

    Departmentation by Functions

    Departmentation by Products

    Departmentation by Territory

    Departmentation by Customers

    Departmentation by Process or Equipments and

    Departmentation by Time and Numbers.

    16. What is Product Departmentation?

    Product departmentalization is defined as creating a division or department for each

    product or product line. Every major product is organized as a separate department. It isgenerally employed when the product is relatively complex and a great deal of capital is

    required for plant and equipment.

    For ex: A big company with diversified product line may have three product divisions-

    one for plastic, chemicals and metals. Each division is subdivided into production, sales,finance and personnel activities.

    17. What is Recruitment and Selection?

    Recruitment: Recruitment is the process of finding and attracting capable applicants

    for employment. The process begins when new recruits are sought and ends when theirapplications are submitted. The result is a pool of applicants from which new employees

    are selected.

    Selection: Selection is the process of differentiating between applicants in order to

    identify those with a greater likelihood of success in a job. It is the process of making

    choice of individuals possessing the required qualifications and skills necessary to

    perform the job successfully.

    39

  • 7/27/2019 POM Concept

    40/79

    18. What is Aptitude test?

    Aptitude test is used formeasuring human performance characteristics related to the

    possible development of proficiency on specific jobs. It measures the latent or potentialcharacteristics to do something provided proper environment and training are added to

    individuals. Aptitude test is designed to examine whether a candidate is likely to be ableto acquire the skills and knowledge necessary to perform the job. It is used to measure the

    job proficiency and job training of an employee.

    19. What is Intelligent test?

    Intelligent tests are the tests that measure a candidates existing intelligence. It is related

    to job concern such as wiring, assembling, artistic etc. This includes verbal

    comprehension, word fluency, memory, reasoning, speed of perception, etc. IQ(Intelligent Quotient) is calculated as follows: mental age

    IQ = -------------- * 100.

    actual age

    20. What is Personality test?

    Personality test is administered to predict performance success for jobs that require

    dealing with people, or jobs that are essentially supervisory or managerial in

    character. It is a projective test as it projects the personality of an individual who may be

    employed by the organization. Personality tests are a type of psychological questionnaire

    designed to measure the more permanent emotional tendencies people have, that make uptheir personality.

    Ex: Thematic Apperception Test (TAT)

    21. What is On-the-job training?

    On-the-job describes training that is given in a normal working situation, using the

    actual tools, equipment, documents or materials that they will use when fully

    trained. On-the-job training (OJT) is one of the best training methods because it is

    planned, organized, and conducted at the employee\'s worksite. OJT will generally be theprimary method used for broadening employee skills and increasing productivity. It is

    particularly appropriate for developing proficiency skills unique to an employee\'s job-

    especially jobs that are relatively easy to learn and require locally-owned equipment andfacilities.

    Ex: Coaching.

    22. What is Off-the-job training?

    Off-the-job training takes place away from normal work situation which means that the

    employee is not regarded as productive worker when training is taking place. Anadvantage of off-the-job training is that it allows people to get away from work and

    40

  • 7/27/2019 POM Concept

    41/79

    totally concentrate on the training being given. This is most effective for training

    concepts and ideas.

    Ex: Seminars and lectures.

    23. What is Matrix Organisation?

    Matrix structure is a hybrid organizational form, containing characteristics of both

    project and functional structures. It is two dimensional pattern developed to meet theproblems of growing size and complexity of undertakings. Matrix organization is any

    organization that employs multiple command structure but also related support

    mechanism and an associated organizational culture and behavioural pattern.

    It is defined as any organization that employs a multiple command system that includes

    not only the multiple command structure but also related support mechanism and anassociated organizational culture and behaviour pattern.

    24. What is an Organizational chart?

    According to George Terry, Organizational chart is a diagrammatical form, which

    shows the important aspects of an organization including the major functions and their

    respective relationships, the channels of supervision, and the relative authority of each

    employee who is in charge of each respective function. It is a representation of theframework or structure of an organization. It may be a vertical or top-down chart,

    horizontal or left to right chart and circle or concentric chart.

    25. What is Span of Control?

    Span of Control or Span of Management means the number of people effectively

    managed by a single superior in an organization. It is also known as Span ofSupervision, Span of Authority and Span of Responsibility. It is very difficult todecide the appropriate span of control. It is related to the degree of responsibility

    exercised by the group members. It refers to the number of subordinates that report

    directly to a single manager or superior.

    26. What is Line authority?

    Line authority, the basic authority in an organization, is the ultimate authority to

    command, act, decide, approve or disapprove-directly or indirectly-all the activities ofthe organization. It is the authority to direct the work of others and to require them to

    conform to decisions, plans, policies, systems, procedures and goals. Line authority

    exists between superior and his subordinate.

    In the organizing process, activities are assigned to the individuals making them

    responsible for the proper performance of these activities. Line officials are in the chainof command from the highest executive to the lowest position in the organization.

    28. What is Staff authority?

    41

  • 7/27/2019 POM Concept

    42/79

    Staff authority refers to those elements which have responsibility and authority for

    providing advice and services to line in attainment of objective. It is best defined asauthority whose scope is limited, by the absence of the right to direct or command, to

    such auxiliary and facilitating activities as planning, recommending, advising or

    assisting.

    The nature of staff authority is advisory. Staff managers cannot issue orders. They canprovide better solutions to organizational problems in their areas. Staff may be divided

    into- personal staff, specialized staff and general staff.

    29. What is Functional authority?

    Functional authority occupies a midway position between line and staff authority. It is a

    means of putting the staff specialists in top positions for the entire enterprise and it

    confers upon the holders a limited power to command over the people of different

    departments concerning their function. It remains confined to functional guidance ofdifferent departments.

    Functional authority differs from line authority in that its right to command is limited to a

    particular specialized area. It differs from staff authority in that functional authority

    confers upon its holders the right to command in matters pertaining to that function.

    27. What is a Committee organization?

    A committee is a group of persons formed to discuss and deliberate on problems and

    to recommend or decide solutions. Its area of operation is determined by itsconstitution. Its scope of activities is limited. This authority is expressed in terms of one

    member one vote. It is a group of six people- two to do the work, three to pat those two

    on the back, and one to present a minority report. A committee usually represents a

    modification in the existing line, line and staff and functional organization structures. It isan aid to the existing organization, rather than an essential part of it. According to the

    nature of their constitution and functions, committees are classified as:

    Line and Staff committees

    Formal and Informal committees

    Standing and Adhoc committees

    Executive committee and

    Coordinating committee.

    28. What is a Project organization?

    Project Organization is oriented towards the completion of a big project or small

    number of big projects of long duration. It is usually structured to facilitate planning

    and designing of the product, completion of the assigned task and phasing out of the

    project. Each project is organized as a semi-autonomous project division. The activities

    42

  • 7/27/2019 POM Concept

    43/79

    of project team members are coordinated by a project manager who is ultimately

    responsible for success of project.

    The need for project organization is felt when an organization is to execute a project orprogramme which is subject to high standards of performance as in case of aircraft

    companies.

    16 Marks

    1. Explain the concept of Functional authority.

    Functional authority occupies a midway position between line and staff authority . It is

    a means of putting the staff specialists in top positions for the entire enterprise and it

    confers upon the holders a limited power to command over the people of different

    departments concerning their function. It remains confined to functional guidance ofdifferent departments.

    Functional authority differs from line authority in that its right to command is limited to a

    particular specialized area. It differs from staff authority in that functional authorityconfers upon its holders the right to command in matters pertaining to that function.

    Definition, nature and purpose of authority

    Nature of Functional authority

    Benefits and limitations of functional authority

    Benefits

    Specialists give expert advice to workers

    Relives line executives of routine

    Reduces number of accidents and wastages

    Duties by an individual are performed in a better manner.

    Limitations

    Danger of undermining authority

    Lack of staff responsibility

    Thinking in vacuum

    Managerial problems

    Delegation of authority

    43

  • 7/27/2019 POM Concept

    44/79

    Importance of authority.

    2. Discuss Delegation of Authority.

    Authority is the right to give orders and the power to exact obedience. It is the power

    to command order to act or not to act in a manner deemed by the possessor to further

    enterprise or departmental purposes.

    Features of authority

    How authority is delegated

    Process of delegation

    Splintered authority

    Principles of delegation

    Personal attitudes towards delegation

    Respectiveness

    Willingness to let go

    Willingness to let others make mistakes

    Willingness to trust subordinates and

    Willingness to establish and use board controls.

    Guide for overcoming weak delegation

    Assignments and delegate authority in light

    Select the person in light of the job to be done

    Maintain open lines of communication

    Establish proper controls and

    Reward effective delegation and successful assumption of authority.

    44

  • 7/27/2019 POM Concept

    45/79

    3. Explain the (i) concept of decentralization (ii) factors determining the degree of

    decentralization of authority.

    Decentralization refers to the systematic effort to delegate to the lowest levels allauthority except that which can only be exercised at central points. It means dispersal of

    decision-making power to the lower levels of the organization.

    Factors that cause decentralization of authority

    Need is realized to take quick and appropriate decisions on the spot at any level

    Top management wants to reduce communication work

    Technological changes

    Growth and diversification of activities of the company

    Provide special emphasis on a product line or a market and

    Physical dispersion of activities of the company.

    Degree of Decentralization of authority

    Number of decisions made lower down the management hierarchy is greater

    More important decisions are made at the lower level

    More functions are affected by decisions made at lower levels and

    Less checking on the decisions made at the lower level.

    Advantages of decentralization

    Limitations of decentralization.

    Achieving effective decentralization.

    4. Explain staffing in detail.

    Staffing is concerned with manning various positions in the organization. It involves

    the determination of manpower requirements of the enterprise and providing it withadequate competent people at all levels. The staffing function of management pertains to

    recruitment, selection, training, development, appraisal and remuneration of personnel. It

    is the tendency in modern organizations to create a separate HR department to performthe staffing function.

    45

  • 7/27/2019 POM Concept

    46/79

    Nature and Role of staffing

    Factors affecting staffing

    External factors

    Internal factors

    Functions of Human Resource Management

    Significance and Process of Manpower planning

    Importance of Staffing function.

    5. Discuss the different sources of Recruitment.

    Recruitment is the process of finding and attracting capable applicants foremployment. The process begins when new recruits are sought and ends when their

    applications are submitted. The result is a pool of applicants from which new employeesare selected.

    Internal sources

    Transfer Promotion

    External sources

    Advertisement

    Recommendations

    Hate applicants

    Employment Exchange

    Personal consultants

    Educational Institutions

    Waiting List

    Unsolicited applications

    Jobbers and Contractors

    Field topics

    Leasing

    46

  • 7/27/2019 POM Concept

    47/79

    Importance of Recruitment.

    6. Explain in detail the Selection process.

    Selection is the process of differentiating between applicants in order to identify those

    with a greater likelihood of success in a job. It is the process of making choice of

    individuals possessing the required qualifications and skills necessary to perform the jobsuccessfully. The process of selection leads to employment of persons having the ability

    and qualifications to perform the jobs which have fallen vacant in an organization.

    Curriculum vitae and application form

    Personal information

    Educational information

    Extra curricular activities

    Work experience and training

    Short listing

    Testing

    Ability test

    Aptitude test

    Performance test

    Personality test

    Interviewing

    Obtaining references

    Medical Examination

    Final selection

    Letter of Offer

    Induction and orientation.

    7. What is performance appraisal?

    Performance Appraisal is a formal, structured system of measuring and evaluating an

    employees job related behaviours and outcomes to discover how & why the employee

    47

  • 7/27/2019 POM Concept

    48/79

    is presently performing on the job and how the employee can perform more

    effectively in the future so that the employee, organization & society can benefit.

    Introduction

    Meaning

    Objectives

    Problems in performance appraisal

    Faulty assumptions

    Psychological Barriers

    Halo effect

    Personal Prejudice

    Subjectivity

    Essentials of effective appraisal

    Criteria for measurement of performance

    Methods of performance appraisal

    Trait-based appraisal

    Graphic scale method

    Ranking method

    Grading

    Forced distribution method

    Checklist method

    Critical incident method

    Group appraisal

    Appraisal by results

    Management By Objectives (MBO)

    Behaviourally Anchored Rating Scales (BARS)

    48

  • 7/27/2019 POM Concept

    49/79

    Assessment centers

    Appraising managers as managers

    8. Discuss the importance of training and the methods of training.

    Training is the act of increasing the knowledge and skills of an employee for doing aparticular job. Training should mould the attitude of a worker towards other coworkers,

    supervisor and the organization

    UNIT IV- DIRECTING

    2 Marks

    1. Define Direction.

    Direction may be defined as the process of instructing, guiding and inspiring human

    factors in the organization to achieve organization objectives.

    2. State two important characteristics of Directing.

    Any two characteristics of Directing are:

    Directing is an important managerial function through which the management initiates

    actions in the organisation.

    It is a continuous process and it continues throughout the life of the Organization.

    3. List out the human factors in managing.

    The Human factors in managing include:

    Multiplicity of roles

    Individuality and

    Personal dignity.

    4. Define creativity.

    Creativity is defined as the ability to produce new and useful ideas through the

    combination of known principles and components in novel and non obvious ways.Creativity exists throughout the population largely independent of age, sex and education.

    5. What are the steps involved in creative process?

    49

    http://www.questionbank4u.com/index.php?action=view&listid=343&subject=84&semester=42http://www.questionbank4u.com/index.php?action=view&listid=343&subject=84&semester=42http://www.questionbank4u.com/index.php?action=view&listid=343&subject=84&semester=42
  • 7/27/2019 POM Concept

    50/79

    Creativity is defined as the ability to produce new and useful ideas through the

    combination of known principles and components in novel and non-obvious ways. Thesteps involved in creative process are:

    Saturation

    Preparation

    Frustration and incubation

    Inspiration or illumination

    Verification

    6. How are problems solved by creative tool?

    Creativity tools are designed to help you devise creative and imaginative solutions to

    problems. Creativity tools are designed to help you devise creative and imaginative

    solutions to problems.

    7. What is a SCAMPER tool?

    SCAMPER is a checklist that helps us to think of changes where

    S - Substitute

    C - Combine

    A - Adapt

    M - Modify

    P - Put to another use

    E - Eliminate and

    R - Reverse.

    8. What is a meant by reframing matrix?

    Reframing matrix is a simple technique that helps to look at business problems from a

    number of different viewpoints. The approach relies on the fact that different people withdifferent experience approach problems in different experience approach in different

    ways.

    9. What are the steps involved in simplex tool?

    Simplex tool is an industrial-strength creativity tool. The steps involved in simplex tool

    are:-

    50

  • 7/27/2019 POM Concept

    51/79

    Problem finding

    Fact finding

    Problem definition

    Idea finding

    Selection and evaluation

    Planning

    Sell data and

    Action.

    10. Differentiate Innovation and Invention.

    Innovation means the use of creative ideas. It is not only relevant to high-techenterprises but also crucial for old-line, traditional companies, which may not servicewithout the infusion of innovation.

    Ex: A new product or a service.

    Invention means really finding new things that are not already available. It is mostlyapplicable in the field of science.

    Ex: Invention of radio.

    11. How can be harmonizing objectives achieved?

    Harmonizing objectives can be achieved through:

    Mutual trust

    Cooperation and understanding and

    Workers participation in management.

    12. Define Multiplicity of Roles.

    Individuals are not only the productive factor in management Plans. They are

    members of social system of many organizations.

    13. Creativity refers to the _____________________________

    It is the ability and power to develop to develop new ideas.

    14. Define Motivation.

    51

  • 7/27/2019 POM Concept

    52/79

    Proper utilization of human resource possible since it inspires employees to make best

    possible use of different factors of production. Motivation means a process of

    stimulating people in action to accomplish desired goals.

    15. Name the steps involved in motivation process.

    Motivation is a behavioural concept that directs human behaviour towards certain goals.The steps involved in the motivation process include,

    Analysis of situation

    Preparing, Selecting and applying a set motivating tools.

    Follow-up.

    16. What are the types of motivation?

    Motivation is a complex process which is created because of the nature of needs and the

    type of behaviour that is attempted to satisfy those needs. The types of motivation are:

    Positive motivation

    Negative motivation

    Extrinsic motivation and

    Intrinsic motivation.

    17. What are the different Motivational theories?

    The different motivational theories include:

    Mc Gregors Theory X and Theory Y.

    Maslows need hierarchy theory

    Herzberg theory of motivation.

    18. List out the basic needs in hierarchy.

    The basic needs in hierarchy include:

    Physiological needs

    Safety needs

    Social needs

    Self-Esteem needs and

    52

  • 7/27/2019 POM Concept

    53/79

    Self-actualization needs

    19. Who is a leader?

    Leader is one who makes his subordinates to do willingly what he wants. The efforts of

    subordinates are to be channelised in the right direction by him.

    20. Define Leadership.

    Leadership is the process of influencing the behaviour of others towards the

    accomplishment of goals in givens situations. Leadership is the art of process ofinfluencing people so that they will strive willingly towards the achievement of group

    goals.

    21. List the few leadership theories?

    Few leadership theories include:

    The Michigan studies

    The Ohio state university studies and

    The Managerial grid.

    22. State House-path goal approach.

    Leaders are effective because of the influence on followers motivation ability to

    perform and their satisfaction. This path goal is employed because the leader setup clear

    guidance through which the subordinates can achieve goals.

    23. Name the various leadership styles.

    The various leadership styles include:

    Autocratic leadership

    Democratic leadership and

    Laissez-faire leadership.

    24. What is Laissez faire?

    Complete freedom is given to the subordinate so that they plan motivate control and

    otherwise be responsible for their own actions.

    25. What is communication?

    Communication is the transmission of information from one person to another person.

    Ex: Business communication.

    53

  • 7/27/2019 POM Concept

    54/79

    26. Mention the various elements in the process of communication?

    The various elements in a communication process:

    Sender

    Communication channels

    Symbols

    Receiver

    Noise and feed back.

    27. Name the various types of communication.

    The various types of communication are:

    Downward and Upward communication

    Formal and Informal communication

    Horizontal and Vertical communication.

    16 Marks

    1. Explain the creative process?

    Creativity: Creativity is the ability to create large number of ideas quickly. Creativeprocess has interacting and over lapping phase. It has four phases:

    Unconscious Scanning

    Intuition

    Insight

    Logical Formulation

    Unconscious Scanning: A condition beyond consciousness.

    Intuition: It connects unconscious with conscious

    Insight: It is the result of hard work

    Logical Formulation: referred to as verification

    Techniques to enhance creativity:

    54

  • 7/27/2019 POM Concept

    55/79

    The following are the techniques to enhance Creativity:

    1. Brainstorming Technique used for problem solving by using new methods

    2. Synectics In this technique group members are selected according to problem oforganization. Then a group leader s chosen who plays a vital role in this process.

    2. Explain the importance of leadership?

    The word leadership implies responsibility, authority and status but power and

    decision making provide the foundations for leadership.

    Four skills needed for Leadership

    Leaders Skills.

    Technical Skills.

    InterpersonalSkills.

    ConceptualSkills.

    Theories of leadership

    TraitApproach.

    BehavioralTheory.

    Laissez-FaireLeadership.

    3. Explain the motivation process?

    4. Explain the Maslows need hierarchy theory?

    Motivation is the process of initiating and directing behavior defined by Victor Vroom.

    Edwin B. Flippo defined motivation as process ofattempting to influence others to doyour will through possibility of gain or reward.

    One of the most popular theories of motivation is the hierarchy of needs theory,developed by an American Psychologist Abraham Maslow and popularized as Maslows

    need hierarchy theory.

    55

  • 7/27/2019 POM Concept

    56/79

    Maslow defined basic human needs as,

    1. Physiological needs.

    2. Safety Needs/ Security Needs.

    3. Social Needs.

    4. Esteem Needs.

    5. Self-Actualization needs.

    In the hierarchy first two needs i.e. physiological needs and safety needs are called, aslower level needs. These needs are finite. The next three needs i.e. social needs, esteem

    needs and self actualization needs are higher level needs. The higher level needs are

    infinite.

    5. Explain the special motivational techniques?

    Motivation is the process of initiating and directing behavior defined by Victor

    Vroom.

    Edwin B. Flippo defined motivation as process of attempting to influence others to doyour will through possibility of gain or reward.

    Reinforcement theory is the special motivational technique adopted that examines theeffects those consequences have on motivation and behavior.

    The two principal approaches that can be used to increase the probability of behavior

    desired by the manager or the organization are as follows,

    1) Positive Reinforcement are desirable consequences often referred to as rewards,

    being given or applied, increase the likelihood of behavior being repeated in the future.

    For positive reinforcement to be effective in motivating behavior in organizationalsettings, they should have the following attributes.

    (a) Equitable

    (b) Efficient

    (c) Available

    (d) Not Exclusive

    (e) Visible

    (f) Reversible

    2) Negative Reinforcement removal of undesirable consequences, that is,

    consequences that a person performing an act does not want, can increase the likelihood

    56

  • 7/27/2019 POM Concept

    57/79

    of that behavior being repeated in the future. The removal of such undesirable

    consequences is called a negative Reinforcement. For negative reinforcement to beeffective, they should have the following attributes.

    (a) Punishments

    (b) Extinctions

    6. Explain the communication process?

    Communication is the exchange of messages between people for the purpose of

    achieving common meanings. Although communication applies to all phases of

    managing, it is particularly important in the leading function.

    The basic communication process consists of the following components

    (i) Sender.

    (ii) Transmission of message (medium).

    (iii) Receiver.

    (iv) Feedback.

    (v) Noise.

    Sender: The sender is the initiator of the message. Message are usually initiated by

    thought or in response to outside stimulus.

    Transmission Medium: The message is transmitted over a medium/ channel that links

    the sender with the receiver.

    Receiver: The receiver is the person with whom the message is exchanged.

    Noise: In communication process noise is the factor that interferes with exchanging

    messages which hampers achieving common meaning.

    Feedback: It provides preliminary information to the sender about the success of thecommunication process.

    7. Explain the barriers to effective communication and suggest measures for

    improvement.

    Communication is the exchange of messages between people for the purpose of achieving

    common meanings.

    Communication breakdown is one of the major problems in communication process.

    Improper communication spoils the teamwork or co-ordination in an organization.

    Various causes of barriers in communication are

    57

  • 7/27/2019 POM Concept

    58/79

    1. Lack of Planning

    2. Unclarified Assumptions

    3. Semantic distortion

    4. Poorly expressed messages

    5. Loss by transmission

    6. Poor listening

    7. Impersonal communication

    Effective Communication:

    For effective communication in an organization several approaches can be used such as

    Communication Audit

    Communication techniques.

    8. What is communication? Explain the principles of effective communication.

    Communication is the exchange of messages between people for the purpose of achieving

    common meanings. Although communication applies to all phases of managing, it is

    particularly important in the leading function.

    Principles of effective communication:

    Effective communication calls for coordinated efforts. It is necessary to understand the

    essentials of good communication and work towards achieving them. They are :

    Be clear about the purpose

    Understand the process of communication

    Be clear about the target audience

    Develop good communication skills

    Be well informed

    Plan your communication

    Be positive in approach

    Be sincere, dont manipulate

    58

  • 7/27/2019 POM Concept

    59/79

    Be consistent

    Appreciate the time factor

    Use proper modes and channels

    Be cost conscious

    Obtain feedback

    9. Explain the different styles of leadership.

    The word leadership implies responsibility, authority and status but power and

    decision making provide the foundations for leadership.

    A leader has to lead